ADRIAN ORR our NEW RBNZ GOVERNOR

[winner69]

NZ Initiative still not impressed with what RBNZ have been doing lately

WALKING THE PATH TO THE NEXT GLOBAL FINANCIAL CRISIS

https://www.nzinitiative.org.nz/repo...s/walking-the/

[Aaron]

In Adrian Orr's defence

It was poor people/afro American s/immigrants/stripper's and pole dancers that crashed the US housing market causing the GFC from bad loans

However

It was the Bill Clinton administration in the 90s that caused it by forcing the big investment Banks /Lehman brothers/Goldman's/Morgan Stanley etc

too lend to these communities/calling them racist and fining them millions per day if they didn't obey.

That's what happens when the Left gets involved with the markets/most likely going to be the same here though not as damaging.

I had read that the real cause was again Bill Clinton but it was the repeal of the Glass Stegall Act that really got thing moving. Banks stopped being solely lending institutions.

The banks didn't need to worry about lending to bad borrowers, they were cutting the loans up and putting them in CDOs and selling them to insurance companies, pension funds and any other mug that bought them. Also rampant gambling with credit default swaps exacerbated the situation.

Fortunately by then the left leaning Obama Govt was in power and was able to bail out the banks with taxpayer dollars so they could pay themselves huge bonuses for being "masters of the universe" and the "smartest men in the room"

I guess you are comfortable with profits going to the smart investor but losses being socialised.

[Aaron]

NZ Initiative still not impressed with what RBNZ have been doing lately

WALKING THE PATH TO THE NEXT GLOBAL FINANCIAL CRISIS

https://www.nzinitiative.org.nz/repo...s/walking-the/

Arthur Grimes started the whole targeted inflation thing and now even he says it is not working.

[Panda-NZ-]

Fortunately by then the left leaning Obama Govt was in power and was able to bail out the banks with taxpayer dollars so they could pay themselves huge bonuses for being "masters of the universe" and the "smartest men in the room"

The two legal systems undermine social stability in the US.

China executes bad executives (not that they're a good approach though).

It should be life imprisonment for these people.

[Panda-NZ-]

Sad thing is that higher interest rates bring with it a higher NZD. Which is bad for NZ.

[winner69]

Sad thing is that higher interest rates bring with it a higher NZD. Which is bad for NZ.

We as a country should be proud if we have a high dollar.

[Aaron]

Who do I believe, Adrian Orr or John Key. If I read this right John suggests Adrian could have a huge influence over the housing market to quote from the article.

https://www.stuff.co.nz/business/ind...-boom-john-key

“The interesting thing I think for New Zealand will be that I think [Reserve Bank governor] Adrian [Orr] holds in his hand now the biggest wand that any Reserve Bank governor has ever held in New Zealand’s history.
And I think the reason for that is the level of private sector debt is so great, particularly in housing, that I think far smaller movements in those interest rates now on the upside will have a much greater impact on housing and on the economy than ever in our history.”

Adrian Orr has just explained that the OCR only plays a "bit" part in house prices. I normally would instinctively disagree with John as he sold us an increase in GST but one of these guys is wrong or lying about the effect of interest rates on house prices. Not hard to pick who I think is a big fat liar. More importantly why is he lying? What does Adrian know that we don't or does he want to delay the tough calls for someone with a back bone. I think we all know a rise in interest rates could possibly set off something in the financial markets, that is not a reason to shy away from the important decisions.

https://www.stuff.co.nz/business/300...stakes-forever

Although she is an economist I am starting to like Sharon Zollner.

Zollner said, while this was a necessary part of a business cycle, central banks had tried to avoid it for many years. “But it’s impossible to save everyone from their investing mistakes forever. There’s a chance some people have started to think central banks are omnipotent and can always step in and save them. Whether you’re talking about house prices in New Zealand or equities in the US, central banks have done that quite successfully since 2000. But it's just too good to be true that central banks can somehow save you every time.

The true test is if asset prices fall and Adrian takes interest rates negative to save everyone from their investing mistakes as prophesized on this very thread by a God like poster.

[Panda-NZ-]

Adrian Orr has just explained that the OCR only plays a "bit" part in house prices. I normally would instinctively disagree with John as he sold us an increase in GST but one of these guys is wrong or lying about the effect of interest rates on house prices. Not hard to pick who I think is a big fat liar. More importantly why is he lying? What does Adrian know that we don't or does he want to delay the tough calls for someone with a back bone. I think we all know a rise in interest rates could possibly set off something in the financial markets, that is not a reason to shy away from the important decisions.

Campaign for house prices to be included in the RBNZ mandate if you are concerned.

[Aaron]

Campaign for house prices to be included in the RBNZ mandate if you are concerned.

Grant Robertson has already done that. Not so long ago in fact.

https://www.rnz.co.nz/news/political...robertson-says

Although Grant Robertson did say he would like to see house prices rising, just not so quickly. So I guess Adrian doesn't have to give it too much thought.

I do want targeted inflation to be scrapped or at least lower the targets to around 0%.

How should I approach campaigning for that? What is most effective? Should I write letters to my local MPs? Or stand on a street corner with a placard? I could join a political party and run for office but no party has this as their policy and I am not very likeable so would struggle to get elected. Any suggestions most welcome.

[TeslaGod]

The true test is if asset prices fall and Adrian takes interest rates negative to save everyone from their investing mistakes as prophesized on this very thread by a God like poster.

They will most likely let the housing market take a sharp punch in the nose causing a nose bleed before stepping in.

ANZ and other retail banks hold the securities on these mortgages, they don't want it falling into negative equity/I mean they have there annual bonuses to think about.

GOD I'm good.